CITY EYES $6.6M BOND ISSUE TO IMPROVE LAKESIDE PARKS
300-foot pier extension off Blossom Heath Park, other improvements slated
St. Clair Shores is eyeing a $6.6 million bond issue to pay for recreational enhancements to Blossom Heath Park that would include an extended pier out into Lake St. Clair.
The St. Clair Shores City Council on Monday approved a notice of intent to issue the bonds, the first in a series of steps to formally approve the project.
The fishing pier, seawall improvements, and related wayfaring features have been approved for the lakeside park on Jefferson Avenue near 10 Mile by the Tax Increment Finance Authority and are now being reviewed by city staff, officials said.
“Our intent is to try to make Blossom Heath Park a place to draw more residents as well as people from outside the community and to make attract more foot traffic for the Nautical Mile,” said City Manager Matthew Coppler.
The big-ticket item for the project is $1.2 million, 300foot extension of the pier into the lake and related seawalls. Other items include:
• A fish-cleaning station.
• Park benches, picnic tables, bike racks and scooter parking.
• Electric vehicle charging station.
• Outdoor exercise equipment.
• A $25,000 digital welcome sign.
• A $125,000 electric Jefferson Avenue sign.
“We’ve talked about that pier for years,” said Councilman David Rubello. “It’s great for a city. I think it will be part of a historic change for the city.”
Councilman Peter Accica agreed. He frequently takes his grandson to the park and thinks the improvements “will give the city more and more to do.”
Council’s John Caron touted the city’s approach, noting the bonding carries a “hefty 18%,” compared to smaller contingences with other projects St. Clair Shores has undertaken
“Our intent is to try to make Blossom Heath Park a place to draw more residents as well as people from outside the community and to make attract more foot traffic for the Nautical Mile.”
— City Manager Matthew Coppler
in recent years, such as the district court building.
“You look at our track record, of where we’re at with debt in the city,” Caron said. “When you look at the debt, the debt per capita is going down every year. So we don’t take this lightly. This isn’t an annual thing for this council.”
But critics objected to spending so much money on what they claim is an an underused facility.
Resident David Deacon said the project as a “waste of money” and said 17 of the listed 62 project features
are “ludicrous.”
Former council member Erin Stahl said the process of not having the matter up for a public vote would “set a bad precedent.”’
“Take it (to) a vote of the people,” she said.
But that won’t be necessary, according to Patrick McGrow, an attorney with the law firm Miller, Canfield, Paddock and Stone, the city’s bond attorney.
He said under a Tax Increment Finance Authority, or TIFA, the taxable value of the properties in the TIFA district is frozen. The city continues to collect the same amount of tax revenue but any “captured” funds — money taken in above the amount when the taxes
were frozen — is diverted into a separate account and can be used for the project to pay off capital projects.
For example if the taxable value is $3 million before the new development occurs, and $5 million after the development, the “captured” tax value is $2 million.
The TIFA brings in about $740,000 a year. Of that, the bond issue would take about $400,000 each year until the bonds are paid off.
McGrow said there are two kinds of municipal bonds — debt millage and limited full faith and credit capital improvement bonds.
State law requires a public vote for any projects
with debt millage that require tax increases, such as school improvements, where the districts are unable to cover the costs with existing funds. In this case, TIFA is using its own proceeds to pay for the project. That’s money the TIFA already has, it is not creating a new funding source.
In addition, there is a 45day period where the public can submit signatures calling for referendum election for the project. They would need 10% of registered voters, or 5,200 signatures.
City officials expect the costs to come in lower than $6.6 million when bids are accepted in early 2021 and anticipate interest rates around 2%.